The Analytical Overview of the Main Currency Pairs on 2018.04.04

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.23018

Open: 1.22683

% chg. over the last day: -0.20

Day's range: 1.22632 – 1.22871

52 wk range: 1.0571 – 1.2557

Yesterday sales prevailed on the EUR/USD currency pair. Germany published weak data on business activity in the manufacturing sector of the country. At the moment the EUR/USD quotes are testing the key support of 1.22600. The round level of 1.23000 is already a "mirror" resistance. The trading instrument is tending to reduce in future. Investors are waiting for the publication of important economic reports.

The news feed on 2018.04.04:

- The consumer price index of the Eurozone at 12:00 (GMT+3:00);

- Preliminary statistics on the US labor market from ADP at 15:15 (GMT+3:00);

- The index of business activity in the non-manufacturing sector of the US from ISM at 17:00 (GMT+3:00).

Indicators point to the power of sellers. The price has fixed below 50 MA and 200 MA.

The MACD histogram is in the negative zone and continues to decline, which signals a fall in EUR/USD.

Stochastic Oscillator is located in the neutral zone, the %K line is below the %D line, which also gives a signal to sell EUR/USD.

Trading recommendations

Support levels: 1.22600, 1.22000

Resistance levels: 1.23000, 1.23350, 1.23750

If the price fixes below 1.22600, a further drop of EUR/USD is expected. The movement is tending to the round level of 1.22000.

Alternative option. If the price fixes above the "mirror" resistance of 1.23000, you need to look for entry points to the market to open long positions. The movement is tending to 1.23350-1.23750.

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.40419

Open: 1.40538

% chg. over the last day: +0.17

Day's range: 1.40527 – 1.40966

52 wk range: 1.2361– 1.4345

Since the beginning of this week, the GBP/USD currency pair is in a sideways trend. A unidirectional trend is not observed. At the moment, the key support and resistance levels are 1.40500 and 1.40900, respectively. The positions must be opened from these marks. We recommend you to pay attention to economic reports from the United Kingdom and the United States.

At 11:30 (GMT+3:00) the index of business activity in the construction sector in the UK will be published.

Indicators do not send accurate signals. The price has fixed between 50 MA and 200 MA.

The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy GBP/USD.

Stochastic Oscillator is located in the neutral zone, the %K line is below the %D line, which sends a signal to sell GBP/USD.

Trading recommendations

Support levels: 1.40500, 1.40150

Resistance levels: 1.40900, 1.41200, 1.41600

If the price fixes below 1.40500, it is necessary to consider sales of GBP/USD. The movement is tending to 1.40150-1.40000.

Alternative option. If the price fixes above 1.40900, GBP/USD is expected to rise. The movement is tending to 1.41200-1.41600.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.28816

Open: 1.28049

% chg. over the last day: -0.82

Day's range: 1.27748 – 1.28088

52 wk range: 1.2059 – 1.3795

Yesterday, aggressive sales were observed on the USD/CAD currency pair. The drop in quotations exceeded 100 points. There was information that Donald Trump planned to settle NAFTA in the near future. Additional support for the Canadian dollar is provided by the positive dynamics of the oil quotes. At the moment, the USD/CAD currency pair is consolidating. The key trading range is 1.27750-1.28100. We recommend opening positions from these marks.

The news feed on Canada's economy is calm.

The signals of the indicators are different. The price has fixed below 50 MA and 200 MA.

The MACD histogram is located in the negative zone, but above the signal line, which gives a weak signal to sell USD/CAD.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which indicates a correction of the USD/CAD quotes.

Trading recommendations

Support levels: 1.27750, 1.27300, 1.27000

Resistance levels: 1.28100, 1.28500, 1.28750

If the price fixes below the support level of 1.27750, the USD/CAD quotes are expected to fall further. The movement is tending to 1.27300-1.27000.

Alternative option. If the price fixes above 1.28100, a correction of the USD/CAD currency pair is expected. The target movement level is 1.28500.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 105.872

Open: 106.612

% chg. over the last day: +0.52

Day's range: 106.409 – 106.686

52 wk range: 104.56 – 114.74

Yesterday the USD/JPY currency pair kept the support level of 105.750, which triggered aggressive purchases. The yen weakened against the US dollar by more than 75 points. At the moment, the trading instrument is consolidating. The USD/JPY quotes are testing local support and resistance levels: 106.350 and 106.650. Positions must be opened above/below these markers.

We recommend paying attention to economic reports from the USA.

The price рas fixed above 50 MA and 200 MA, which signals the power of buyers.

The MACD histogram is located in the positive zone, but below the signal line, which gives a weak signal to buy USD/JPY.

Stochastic Oscillator is in the neutral zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations

Support levels: 106.350, 106.100, 105.750

Resistance levels: 106.650, 107.000

If the price fixes above the 106.650 level, you should consider buying USD/JPY. The immediate goal of fixing profits is the round level of 107.000.

Alternative option. If the price fixes below the 106.350 level, USD/JPY is expected to fall. The target movement level is 106.100-105.750.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer,
and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.